WESTGATE ENERGY ANNOUNCES INTENTION TO LAUNCH WARRANT EXERCISE INCENTIVE PROGRAM AND OPERATIONAL UPDATE
Executive Summary
- Westgate Energy intends to launch a warrant exercise incentive program that could generate up to CAD 3.9 million in gross proceeds.
- The program offers holders of 16,241,267 eligible warrants an additional half‑share warrant for each exercised warrant during a 30‑day incentive period, with the new warrants exercisable at $0.35 per share for 18 months.
- Operational update shows current production of ~775 boe/d, expected to rise to ~850 boe/d by month‑end, and highlights strong performance from a newly drilled Colony Formation well (≥180 bbls/d weekly average) and the commissioning of a tank treating facility that improves oil capture and reduces costs.
Key Details
- Incentive Program Mechanics
- Eligible Warrants: 16,241,267 outstanding warrants issued in a best‑efforts offering closed 2 Apr 2025; exercise price $0.24 per share, expiry 2 Apr 2027.
- Incentive Period: 30 days from program commencement.
- Incentive Warrant Issuance: For each Eligible Warrant exercised, holder receives one‑half of an additional common‑share purchase warrant (total possible issuance up to 8,270,633 Incentive Warrants).
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Exercise Price of Incentive Warrants: $0.35 per share; term 18 months from issuance.
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Acceleration Clause
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If TSXV volume‑weighted average price ≥ $0.45 for ten consecutive trading days, Westgate may accelerate expiry of Incentive Warrants (expire 30 calendar days after acceleration notice).
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Proceeds & Use of Funds
- Expected gross proceeds: up to approximately CAD 3,897,900.
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Intended use: fund pre‑drilling costs for a potential spring drilling program, additional operating cost reductions at Beaverdam, and general working capital.
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Regulatory Requirement
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Program subject to TSXV approval; upon approval, Westgate will issue a confirming press release outlining the Incentive Period.
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Production Update
- Current corporate production: ~775 boe/d (wells stabilizing after workovers and pump replacements).
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Expected production by month‑end: ~850 boe/d.
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Colony Formation Well Performance
- Latest well from November drilling program achieved peak weekly average > 180 bbls/d.
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Colony Formation is the largest contributor to Westgate’s drilling inventory at Beaverdam; planning underway for a spring drilling program focused on this formation.
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Tank Treating Facility
- Recently commissioned facility now operational, improving oil capture and reducing operating costs.
- Capacity to service up to 25 additional wells, enhancing recovery and cost efficiency.
Notable Quotes
- “We are very encouraged by the performance of our latest Colony well and believe the Incentive Program will provide valuable capital to accelerate our growth plans,” – Dan Brown, CEO & Director.